Establishment of rents between landlord and tenant in housing
space in dwellings to which this chapter is applicable shall hereafter
be determined by the provisions of this chapter. Any rental increase
at a time other than at the expiration of a lease or termination of
the periodic lease shall be void. Any rental increase in excess of
that authorized by the provisions of this chapter shall be void. Determinations
under this section shall be made by the Rent Regulation Officer.
[Amended 3-2-2011 by Ord. No. Z-88]
All rents for rental of housing space and services in dwellings
to which this act is applicable are hereby controlled at the base
rent level received by the landlord as of October 1, 1985, and no
rental increases shall be hereinafter demanded, paid or accepted,
except as provided in this chapter. Any rent increases imposed after
October 1, 1985, to the extent that such increases are in excess of
the rent increases allowed under this ordinance, are hereby declared
to be null and void, and subject to the limitations and repose period
set forth herein, such excess rents shall be refunded or credited
to the tenant by the landlord forthwith. All rents may be rounded
up or down to the nearest dollar after making the computations. Landlords
shall report all increases of rents imposed after October 1, 1985,
to the Rent Leveling and Stabilization Board. Any landlord seeking
an increase shall notify the tenant, in writing, at least 30 days
prior to the effective date of the increase and explain, in detail,
the reason for the increase. Determinations under this section shall
be made by the Rent Regulation Officer.
A.
Disclosure statement.
(1)
Every landlord subject to the provisions of this chapter shall be
required to provide to each tenant a disclosure statement, on Board-approved
forms, available through the Rent Regulation office or by download
from the City's website. The disclosure statement shall include a
detailed description of the tenant's rights under this chapter, including
but not limited to the right to request a legal rent calculation to
determine the legal base rent; notice that a failure to request a
legal rent calculation within two years of service of the disclosure
statement will result in a bar of a refund and/or credit of an excess
or overpayment of rents; notice that a copy of the landlord's registration
statement will be on file with the Rent Regulation office and available
to a tenant upon request; and an acknowledgement by the landlord advising
the tenant of the Truth-in-Renting Act, N.J.S.A. 46:8-43 et seq.,
and the statement/booklet prepared therein, which can be obtained
from the New Jersey Department of Community Affairs Division of Codes
and Standards, Landlord-Tenant Information Service, P.O. Box 805 Trenton,
New Jersey 08625; the disclosure statement is to be signed and dated
by the tenant and filed by the landlord with the Rent Regulation Officer.
In the absence of a disclosure statement that is signed and dated
by the tenant, a landlord may also establish proof of service of the
disclosure statement by filing both a copy of the disclosure statement
and a receipt indicating that the disclosure statement was delivered
and received by the tenant via certified mail.
(2)
The Rent Regulation Officer shall be authorized to prepare and revise
the disclosure statement as needed in an effort to comply with the
intention and purpose of this section.
B.
Two-year statute of limitations. A refund and/or credit of excess rents shall be barred if the tenant's request for a legal rent calculation is not made within two years from service of the disclosure statement upon the tenant. The statute of limitations commences only upon proper service of the disclosure statement in compliance with § 155-4. Nothing in this provision shall bar a tenant from requesting a legal rent calculation, nor prohibit the Rent Regulation Officer or Board from rendering a determination as to whether the rent of the dwelling is in excess of those permitted under this chapter.
C.
Two-year period of repose. In no instance shall a tenant be allowed
to collect rental overcharges for a period in excess of two years
as determined by the Rent Leveling Officer or the Board. Nothing in
this provision shall bar a tenant from requesting a legal rent calculation,
nor prohibit the Rent Regulation Officer or Board from rendering a
determination as to whether the rent of the dwelling is in excess
of those permitted under this chapter.
D.
Criteria to be considered by the Rent Regulation Officer in rendering
legal rent calculations.
[Amended 2-1-2023 by Ord.
No. B-532]
(1)
In rendering a legal rent calculation to determine a current legal
rent, the Rent Regulation Officer shall consider prior rent registration
statements, prior legal rent calculations, proper annual CPI increases,
vacancy decontrol certificates filed, or other appropriate adjustments
to the legal rent that are consistent with this chapter (e.g., approved
surcharges or hardship increases). In determining a base rent, the
Rent Regulation Officer shall begin the method of calculation by determining
the rent charged and received on October 1, 1985. In the event that
the dwelling unit was not offered for rent until after October 1,
1985, the Rent Regulation Officer shall begin the method of calculation
by determining the first rent charged after October 1, 1985. If there
is a prior legal rent calculation for the particular dwelling unit
determining the legal rent on or after October 1, 1985, the Rent Regulation
Officer shall review and update the calculation from the effective
date of that prior calculation.
(2)
If a landlord has failed to file rent registration statements, vacancy
decontrol certificates, or other required filings such that a proper
legal rent calculation cannot be readily performed, alternative proofs
may be considered by the Rent Registration Officer and/or the Board
to determine an appropriate base rent or legal rent calculation. For
the purpose of calculating the earliest date of a verifiable rent
to determine the base rent or legal rent of the individual dwelling
unit, including but not limited to the consideration of a vacancy
of an individual dwelling unit, a landlord shall be permitted to submit
credible alternative proofs for consideration by the Rent Regulation
Officer or the Board to determine the earliest date of a verifiable
rent, the legal rent of the individual dwelling unit, and/or whether
and when vacancies have occurred. These alternative proofs may consist
of, but are not limited to, leases showing vacancies and/or statements
under oath from reliable sources. In presenting alternative proofs
for a vacancy, a certified statement from the landlord should be submitted
indicating that the tenant vacated the apartment voluntarily and without
harassment, duress, or unreasonable pressure from the landlord or
its agents. The Rent Regulation Officer and/or the Rent Leveling and
Stabilization Board shall have absolute discretion to determine the
reliability of any such alternative proofs.
(3)
In the event that a legal rent calculation conducted by the Rent
Regulation Officer would result in a legal rent that is greater than
the rent currently charged to a tenant, a landlord is not permitted,
under any circumstances, to charge a tenant rent at a level determined
by said legal rent calculation, and the legal rent for the dwelling
unit shall be adjusted to be set at the actual rent charged. Under
such circumstances, a landlord is limited to annual increases provided
for in the ordinary course by this chapter, such as annual CPI increases,
surcharges, and other increases permitted by this chapter. Under no
circumstances shall a tenant be subject to an increase of rent greater
than the rent that has been charged plus properly imposed increases
under this chapter based upon a legal rent calculation that is greater
than rent actually charged.
[Amended 2-1-2023 by Ord. No. B-532]
At the expiration of a lease or at the termination of a lease
of a periodic tenant, no landlord may request or receive a percentage
increase in rent which is greater than 5% or the percentage difference
between the consumer price index three months prior to the expiration
or termination of the lease and three months prior to the commencement
of the lease term, whichever is less. For a periodic tenant or for
a tenant whose lease terms shall be less than one year, said tenant
shall not suffer or be caused to pay more than one rent increase in
any twelve-month period which exceeds 5% or the consumer price index
percentage differential for the twelve-month period commencing 15
months prior to and ending three months prior to the effective date
of the proposed increase, whichever is less. No more than one such
cost-of-living rental increase in any one twelve-month period shall
be permitted irrespective of the number of different tenants occupying
said housing space during said twelve-month period.
[Amended 7-12-2000 by Ord. No. R-449; 9-6-2000 by Ord. No. R-455; 1-22-2014 by Ord. No. Z-276; 8-1-2018 by Ord. No. B-58; 1-16-2019 by Ord. No. B-104]
A.
For all tax surcharges that were in effect and current prior to the effective date of this chapter, a landlord may continue to collect a tax surcharge from a tenant in the amount heretofore approved for those taxes that are in excess of those assessed for the 1988 tax year. For such properties where a tax surcharge was in effect and current prior to the effective date of this chapter, a landlord may annually reapply for a new tax surcharge once every 12 months to replace the old surcharge. For such properties, if a landlord fails or elects not to annually reapply for a tax surcharge, the tax surcharge shall lapse, and should that landlord seek a new tax surcharge on that property, the landlord must seek a tax surcharge in accordance with Subsection C of this section of the Code. The rental increase permitted for taxes is determined, charged, and treated in the manner set forth in Subsection C, below. A tax surcharge is "current" if the landlord has applied for a tax surcharge or reapplied for a new tax surcharge within the past 12 months.
B.
If properties with tax surcharges in effect and current prior to the effective date of this chapter are sold or otherwise transferred, the new owner/landlord may continue to collect a tax surcharge from a tenant in the amount heretofore approved for those taxes in the same manner as the prior owner, as set forth and in accordance with Subsection A, above.
C.
For any application for a tax surcharge after the effective date of this chapter, a landlord may seek a tax surcharge to be charged to a tenant because of an increase in municipal property taxes if said taxes are in excess of those assessed for the year that the landlord acquired the property or for the 1988 tax year, whichever assessment date is later. Any such application for a tax surcharge shall be accompanied by a copy of the deed to the property to establish the year in which the property was acquired by the landlord for the purpose of determining the tax surcharge. The rental increase permitted for taxes is determined by the Rent Regulation Officer pursuant to a formula approved by the Rent Control Board. The rent increase for taxes that each tenant is liable to pay shall be paid in 12 equal monthly payments, 1/12 each month. The surcharge shall not be considered rent for purposes of computing cost-of-living rental increases. Determinations under this section shall be made by the Rent Regulation Officer. If an initial rental decontrol as set forth in § 155-37 occurs, the base year shall be the date of the first paid four quarters in the taxes after the initial rental decontrol.
D.
Tax surcharges are in effect for 12 months. A landlord with a tax
surcharge must reapply for a new tax surcharge every 12 months.
E.
F.
Any tax surcharge that has been approved may only be imposed at the
commencement of a lease term or upon renewal of a lease term and must
be included in the lease/renewal, otherwise it may not be imposed.
(1)
In no case shall the landlord be permitted to impose a tax surcharge
without removal of the previous tax surcharge.
(2)
Nothing herein requires a landlord to impose a tax surcharge or to
impose the full amount of the allowable tax surcharge after having
been approved to do so.
(3)
Rental units must be registered to qualify for a tax surcharge.
[Added 9-3-1986 by Ord. No. V-66]
A.
The landlord may seek a water and sewerage surcharge from a tenant
because of an increase in the municipal water and sewer charges in
excess of those assessed for 1996. The rental increase permitted for
water and sewer surcharge is determined by the Rent Regulation Officer
pursuant to a formula approved by the Rent Control Board. The rent
increase for water and sewer that each tenant is liable to pay shall
be paid in 12 equal monthly payments, 1/12 each month. The surcharge
shall not be considered rent for purposes of computing cost-of-living
rental increases. Determinations under this section shall be made
by the Rent Regulation Officer.
[Amended 7-12-2000 by Ord. No. R-449; 9-6-2000 by Ord. No.
R-455]
In the event that a tax appeal is taken by the landlord and
the landlord is successful in said appeal and the taxes reduced, the
tenants shall receive a reduction as applied to their tax portion,
after deducting all expenses incurred by the landlord in prosecuting
said appeal.
In the case of tenant(s) that have moved, the landlord shall
make diligent efforts for three months to forward the refund to said
tenant(s). If these efforts do not succeed, the landlord shall apportion
said refund to the rents of the remaining tenants. Determinations
under this section shall be made by the Rent Regulation Officer.
A.
Upon notice to its tenants, a landlord may apply to the Rent Leveling
and Stabilization Board for a rental surcharge for capital improvement
to the building and/or demised premises. Such application and supporting
materials shall set forth the improvement, the cost thereof and its
useful life. The landlord shall propose to apportion the cost of the
improvement over its useful life among the tenants in the building
in accordance with one of the following methods:
(1)
If the capital improvement benefits certain housing spaces only,
then the cost of these improvements shall be surcharged to only these
units.
(2)
If the capital improvement benefits all housing spaces but in varying
degrees according to the amount of living area of each housing space,
then the cost for the improvements shall be surcharged according to
either the number of rooms or the number of square feet in the housing
space in proportion to the total rentable area in the dwelling.
(3)
If the capital improvement is equally beneficial to all housing spaces,
regardless of the living area within any housing space, then the cost
of the improvements shall be surcharged according to the number of
housing spaces within the dwelling.
B.
Permits as required by law are to be secured from all agencies having
control and jurisdiction, for alterations, repairs, replacements,
extensions and new buildings. All work must adhere to appropriate
code standards and must be inspected by all agencies having control
and jurisdiction and their approval obtained. A certificate of occupancy
must be secured, if required by law.
C.
Any applications under the provisions of this Article of the chapter
must prove, prior to the application acceptance, that the dwelling
is:
Prior to any application under this section, the landlord shall
serve upon each tenant, by registered or certified mail or personal
service of a notice of application filing setting forth the basis
for said application, the amount of rental increase of surcharge applied
for with respect to that tenant and the calculations involved. A sample
copy of such notice shall be filed with the application of the landlord,
together with an affidavit or certification of service of notice of
application upon each tenant. Copies of bills and invoices in support
of the landlord's application shall be made available to the tenant
by the landlord.
The Rent Leveling and Stabilization Board may grant the landlord
a rental surcharge under the provisions of this Article. No landlord
shall impose upon any tenant a rent surcharge under this Article without
first obtaining approval from the Board. In making its determination,
the Board must conclude that the improvement in question is a capital
improvement as defined under this chapter and that it is reasonable
as to its nature and cost. Also, the Board must determine the useful
life of the improvement so that the cost of the same is prorated over
the length of the entire useful life. The burden of proving the useful
life shall be with the landlord, but it is rebuttable. In making this
determination, the Board shall consider the nature and the cost of
the improvement and the effect that the proration of the surcharge
shall have on the existing base rents, it being the intent of this
chapter that the base rents shall under no circumstances be increased
by an amount greater than 33 1/3% due to a capital improvement
surcharge in any one twelve-month period.
[Amended 8-1-2018 by Ord.
No. B-58]
Rent surcharges under this article should become effective contemporaneously with the next scheduled change in the base rent whenever practicable, except with regard to a tax surcharge as provided in § 155-6 above.
[Amended 8-7-1985 by Ord. No. V-8]
For the purpose of computing the cost of a capital improvement
under this section, only 60% of the cost shall be allowed if it is
for the purpose of eliminating violations of housing code provisions,
which provisions were enacted subsequent to January 1, 1985.
A.
In the event that a landlord cannot meet his operating expenses or
does not make a fair return on his investment, he may appeal to the
Rent Leveling and Stabilization Board for a hardship rental increase.
No landlord shall impose upon any tenant an increase in rent under
this Article without first obtaining approval with the Board. It shall
be within the discretion of the Board to fix the effective date of
any approved rental increase to be at any reasonable time as determined
by the Board. Prior to any such appeal to the Board, however, the
landlord shall serve on each tenant a notice of appeal setting forth
in detail the basis for said appeal, and said notice shall be served
at least 20 days before hearing thereon. In considering hardship applications,
the Rent Control Board shall give due consideration to any and all
relevant factors, including but not limited to the following.
(1)
Level and quality of service rendered by the landlord in maintaining
and operating the building.
(2)
The presence or absence or reasonably efficient and economical management.
(3)
Whether the landlord made a reasonably prudent investment in purchasing
the property and arranging financing on said property. In considering
this factor, the Board may consider the purchase price, the fair market
value of the property and the existing rentals at the time of the
purchase to determine, if the debt servicing expenses are excessive.
The Board may also consider the amount of cash invested in the property
in relation to said fair market value and purchase price, the interest
rate of the mortgage and whether the mortgage instrument was arrived
at and executed in an arms-length transaction. It is presumed that
a prospective purchaser of real property in Hoboken shall be familiar
with the terms of this chapter. It is not the intention of this chapter
to permit a hardship rental increase when the landlord has not made
a reasonably prudent investment.
(4)
Whether the operating expenses are reasonably incurred and the income
statement is accurate. Operating expenses shall not include depreciation,
amortization of debt service or capital expenditures but may include
the interest debt service for allowable capital improvement surcharges
subject to the Board's approval. Upon the Board's determination that
the landlord made a reasonable prudent investment, operating expenses
shall include an amount allocable for the average annual payment of
mortgage interest when the mortgage arises from the purchase of the
property. Said average annual payment of mortgage interest shall be
arrived at by taking the total amount of mortgage interest to be paid
over the life of the mortgage and dividing it by the number of years
under the term of the mortgage. Mortgage interest which arises as
a result of a refinancing of the property shall not be considered
an operating expense, unless the funds which arise from the refinance
are invested in the property in which case the Board may allow an
amount allocable to mortgage interest as an operating expense.
B.
The Board, in considering all of the above factors may grant an increase
for hardship.
When services, care or maintenance decline in any dwelling,
any tenant may apply to the Rent Leveling and Stabilization Board
for a decrease in rent. Said notice shall be served on landlord setting
forth, in detail, the reason for such application. At least 20 days
shall elapse before a hearing thereon can be set.
A.
The Regulation Officer shall make all determinations regarding the
eligibility of a newly constructed dwelling for an exemption as defined
above.
B.
The Rent Regulation Officer shall make all determinations regarding
the eligibility of a building completely vacant since January 1, 1984,
for an exemption as defined above.
C.
The Rent Leveling and Stabilization Board shall make all determinations
regarding the eligibility of a completely vacant and deteriorated
building for an exemption as defined above.
In making these determinations, the Board shall proceed as follows:
A.
Review the registration proposal and supporting documentation within
60 days, or as soon as practicable, of their submission to the Officer.
Said proposal must assert that:
(1)
The building is completely vacant and will have been completely vacant
for at least six months prior to the exemption granted under this
Article and that said vacancy did not occur through unlawful means
attributable to the applicant.
(2)
The building is in a deteriorated condition and requires major reconstruction.
(3)
The major reconstruction shall include, by way of example, the repair
and improvement of the exterior walls; the reconstruction of the interior
walls; all new systems for plumbing, heating and electric: new roof;
new windows; sprinkler systems; enunciated panels and electric smoke
alarms; all permits and approvals as required by the applicable codes.
B.
The Board shall, in its initial review, determine that the building
is vacant and deteriorated and requires major reconstruction. It is
the intention of this chapter that a building that is in good condition
shall not be granted an exemption under this Article. If the building
complies with the requirements of this Article, the Board shall issue
a preliminary approval to the applicants to proceed accordingly.
C.
Upon completion of the major reconstruction, the applicant shall
submit a certificate of major reconstruction, indicating compliance
with and performance of the proposal for which was issued a preliminary
approval. The applicant shall also submit a certificate of vacancy,
indicating that the building is and has been completely vacant for
at least six months and that said vacancy did not occur through unlawful
means attributable to the applicant.
